Federal regulators are recalibrating how they police pricing at dealerships, even as a fresh multimillion-dollar settlement shows they have no plans to back off auto retail entirely. Shannon Robertson, Executive Director of the Association of Finance & Insurance Professionals (AFIP), joined us on CBT Live to break down what the FTC’s shifting focus means for dealers.
According to Robertson, the FTC issued a statement two weeks ago adjusting past consent orders tied to disparate pricing allegations. Those cases audited dealers for markups over the buy rate, then applied a government formula to compare outcomes for protected and non-protected classes. Robertson said the formula doesn’t always reflect what a dealer is actually doing, and fighting it in court gets expensive fast.
Robertson cautioned dealers against reading the shift as a green light. He said dealers should still cap markup over buy rate and keep pricing consistent across customers, even with disparate pricing no longer a federal enforcement priority, since state regulators can still act on the same conduct.
The FTC’s recent $4 million settlement with Manchester City Nissan shows the agency remains active elsewhere. According to Robertson, the case came down to a simple violation, that the dealership advertised vehicles online as certified pre-owned, then added a separate charge for that certification on the buyer’s addendum.
But for Robertson, he believes the compliance check starts online. He mystery shops the dealership’s own website, posing as a buyer to confirm the advertised price matches what a customer is actually quoted in person. From there, he reviews policies and training logs, looking for documented proof that staff have been trained on what they can and cannot say or charge.
